Oil well, no need for more barrels: Opec

Rajeev Jayaswal, TNNNov 15, 2007, 01.29am IST

RIYADH: The Organisation of Petroleum Exporting Countries (Opec) has said the surge in global fuel prices is not due to the shortage of oil in the market and certainly not due to the fast-growing Indian and Chinese economies. The oil producers group has also ruled out output increase in near future.

Stating that there is enough oil in the market, Opec secretary-general Abdalla Salem El-Badri said, "Opec is neither in favour of high oil prices, nor in favour of low oil prices. We would like to see a stable market." He was addressing a conference at the Third Opec Summit.

Ruling out a link with high oil consumption in India and China, he said, "India and China are not to be blamed for the price spiral. There are other factors." He, however, maintained silence on the contributing factors.

The Opec official welcomed the fast economic growth in India and China as a positive development for Opec members. "They have the capability and resources.

Opec is ready to provide their energy needs," he said. Opec is a permanent, inter-governmental organisation created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five founding members were later joined by nine other: Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon and Angola.

Speaking at the occasion, the summit chairman and Saudi Arabian prince Abdulaziz Bin Salman Bin Abdulaziz Al-Saud said there has been no discrimination against any Asian country while fixing prices for oil exports. He said there was no policy to charge Asian premium. Saudi Arabia is the largest oil producer.

Opec is likely to take a decision of increasing crude production at its next meeting. The group deferred the decision on increasing oil production to the next ministerial meeting of the oil producers in Abu Dhabi in December.

"We are preparing for the December meeting. It is up to the ministers (of the member countries) to decide," Mr El-Badri said. His comments are significant in the background of US energy secretary Samuel Bodman's demand from Opec for raising production this weekend.